What impact will Coinbase bring after listing?
Since Coinbase's initial public offering transaction after its successful listing on Nasdaq, the market heat has caused its stock price to rise to more than 30% of its market value, which shows that the transaction is extremely active. As the global cryptocurrency market continues to heat up, actively embracing regulation to provide security has become the first choice for Coinbase to complete the global listing.
However, Coinbase's stock price rose sharply at the opening as expected. The opening price was also mentioned in detail in Chen Xin’s article yesterday, but what needs to be reminded is that the initial market value is directly approaching 100 billion US dollars based on the number of fully diluted shares. It hit $99.6 billion, before Coinbase shares quickly shot up to $429.54. The increase was 72%, and the market value once exceeded 100 billion U.S. dollars.
Affected by the negative remarks of Federal Reserve Chairman Powell, its stock price basically turned around and went down all the way. The opening price of $381 also failed to hold, and finally closed at $328.28. It is only 31.31% higher than the offering price of US$250. Looking at the performance of Coinbase, an image person who has always been disciplined, on the first day of listing, although the stock price soared and fell, it also performed a wonderful carnival.
It has been praised by the blockchain industry, especially investors in the currency circle and people in the encrypted digital currency industry. It happened that Powell was doing an online interview on the day when Coinbase landed on Nasdaq. He believes that encrypted digital currency is mainly used to suppress price increases, but has not reached the status of a payment mechanism. Therefore, the encrypted digital currency is actually a tool for listed investment. After Powell's cold water poured out, the stock price of Coinbase, which was just listed, fell and gave up many gains during the day.
At the same time, it was approaching US$65,000 at the same time, and Bitcoin, which hit a record high, also fell by more than 5% from its intraday high. According to the prospectus of Coinbase, as of the end of December 2020, the total transaction volume of more than 90 kinds of encrypted currency transactions, managed credit and other customers on its platform exceeded 456 billion US dollars, and assets worth more than 90 billion US dollars were stored.
Coinbase just turned a profit last year, with a total revenue of US$1.277 billion in 2020, a year-on-year increase of 128% from US$534 million in 2019, and a net profit of US$322 million. Then, in 2019, the net loss for the whole year was 30.4 million US dollars. The transaction volume and profit acquisition are inseparable from the recent rapid development of encrypted digital currency. Bitcoin, the most prominent cryptocurrency in the cryptocurrency space, recently traded at around $60,000, driven by institutions and a growing number of investors.
Significantly higher than about US$7,000 a year ago, Mark, research director of blockchain companies, pointed out that Coinbase's off-site quarterly transaction volume in 2021 is expected to reach US$362.6 billion and four times that of the fourth quarter of last year. The resulting fee income of about 2.44 billion U.S. dollars will also become a support for Coinbase's persistence. At present, according to the expected low-end of Coinbase’s first quarter, the company’s adaptation rate calculated based on 12-month expected profits is about 90 times, compared with 31 times the trial operation rate of Intercontinental Exchange, a five-company company on the New York Stock Exchange.
Nasdaq's trial operation rate calculated based on 12-month expected profit is about 27 times. The core of Coinbase's profit model lies in the transaction fees that users need to pay when buying, selling or extracting value on Coinbase. Then these fees change according to the price and quantity of the cryptocurrency involved in the Bitcoin transaction, so the transaction income depends on the transaction volume on Coinbase and the volatility of the price of encrypted assets.
Coinbase’s subscription and services business, on the other hand, offers a more stable revenue stream, with the company earning fees from the crypto assets it custodians and earning by validating a transaction in crypto. It also earns licensing revenue from a data analysis tool in the business that is used by law enforcement and financial institutions to police blockchain transactions.
Although this business only accounts for 4% of Coinbase's total revenue, it is growing rapidly at an annual growth rate of 126%. But Coinbase trading volumes may be directly affected by fluctuations in cryptocurrency prices, creating uncertainty about future performance. The stock price yield on the open market is also very high. For Coinbase to become the first cryptocurrency exchange, industry insiders also expressed the rapid development of the cryptocurrency market, and it should actively embrace supervision, which also adds a confidence to go public and at the same time It is expected to lead a wave of listing of related technology companies.
Yu Jianing, president of Huobi University, chairman of the China Communications Industry Blockchain Committee, said that Coinbase began to apply for a remittance license in the United States in 2013 and then obtained an electronic currency license in the European region. It requires very strict requirements for digital asset activities in New York. operating license. Registered the msb license with the Financial Crimes Enforcement Agency of the United States and began to apply for additional licenses from other regulatory agencies. If we want to talk about the significance and prospects of Coinbase’s listing, Chen Xin believes that this will hopefully bring the industry into the next Phases of Compliance Development
The listing of Coinbase will greatly promote the acceptance of digital assets in the mainstream market and drive more traditional investors to pay attention to a digital asset field, and promote the acceptance of digital assets by mainstream capital and drive more traditional investors and funds to enter the market. The global digital asset trading field will move towards a mainstream and institutionalization, which is also an irreversible trend.
In addition, the listing of Coinbase is expected to promote the improvement of laws and regulations for the digital asset industry in various countries. At present, the global regulatory policy for digital assets is still in its early stages. The adoption of regulation in Shahe in some countries has gradually brought digital finance into the existing regulatory system. The listing of Coinbase will allow regulatory authorities in various countries to see the potential of new assets in compliance. This is exactly the meaning of digital assets. Or there are certain enlightenments in balancing financial innovation and supervision, and further research and thinking on compliance.
What Chen Xin said above is that he hopes everyone understands that the listing of Coinbase and the fluctuation of its market value are very critical to the current market changes of Bitcoin. Chen Xin will write a special article to talk about Coinbase at a later time What impact will the listing of Bitcoin have.
Bitcoin:
Bitcoin:
In the four-hour level chart, the Bollinger Bands closed, and the market has now fallen back to run near the lower track of the Bollinger Bands, and is now at 60777 points; the five-day moving average and the ten-day moving average have turned from flat to downward, and the power of the short side is still growing. , to suppress the price of the currency below it; in the attached picture, the MACD fast and slow line runs above the zero axis, showing a dead fork state; both RSI and Stoch maintain a downward posture of running; it can be seen that the short-term trend is mostly based on The downward callback is the main one.
Operation suggestion:
Call back near 60000, you can do long single target point at 60800, defensive point at 58800, if it stabilizes at 61000, continue to follow up the multi-single target point at 61800, defensive point at 60800
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